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 Anaconda \quad\quad\quad\quad\quad\quad\text { Anaconda }  Bear \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Bear } -
the Table Above Gives the Production Possibilities Frontier for \text

Question 60

Multiple Choice

 Anaconda \quad\quad\quad\quad\quad\quad\text { Anaconda } Bear \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Bear }
 Production  Corn  Shoes  Production Corn  Shoes  point (tons)  (number)  point (tons)  (number)  A0 and 700 A0 and 1000 B1 and 650 B1 and 900C2 and 550C2 and 700D3 and 350D3 and 400E4 and 0E4 and 0\begin{array}{ccccccc}\hline \text { Production } & \text { Corn } && \text { Shoes } & \text { Production} & \text { Corn } && \text { Shoes }\\\text { point}&\text { (tons) }&&\text { (number) }&\text { point}&\text { (tons) }&&\text { (number) }\\\hline \mathrm{A} & 0 & \text { and } & 700 & \mathrm{~A} & 0 & \text { and } & 1000 \\\mathrm{~B} & 1 & \text { and } & 650 & \mathrm{~B} & 1 & \text { and } & 900 \\\mathrm{C} & 2 & \text { and } & 550 & \mathrm{C} & 2 & \text { and } & 700 \\\mathrm{D} & 3 & \text { and } & 350 & \mathrm{D} & 3 & \text { and } & 400 \\\mathrm{E} & 4 & \text { and } & 0 & \mathrm{E} & 4 & \text { and } & 0 \\\hline\end{array}
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The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that


A) Bear has an absolute advantage in the production of both goods.
B) Anaconda has a comparative advantage in the production of corn.
C) Bear achieves production efficiency only at its production point A.
D) Anaconda achieves production efficiency only at its production point A.
E) Both answers A and B are correct.

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